Question 1

If the CPI is 143 in year 1 and 149 in year 2,what is the approximate percentage change in prices between the two years?

Accepted Answer

A)  3.9 percent 
B)  4.2 percent 
C)  15.7 percent 
D)  11.4 percent 
E)  6.0 percent 
A)  3.9 percent 
B)  4.2 percent 
C)  15.7 percent 
D)  11.4 percent 
E)  6.0 percent B

Question 2

At the time of Kelsey's 20 year high school reunion she was earning $50,000 and the CPI was 120. Now that it is time for her to attend her 30 year high school reunion,Kelsey's income has risen to $97,000 and the CPI is 230. At her 30 year reunion,can Kelsey rightfully brag that her real income has risen since the last time she saw her former classmates ten years ago?

Accepted Answer

A)  Yes, Kelsey's real income rose during that 10 year period. 
B)  No, Kelsey's real income fell during that 10 year period. 
C)  No, Kelsey's real income remained constant during that 10 year period. 
D)  It is impossible to determine what happened to Kelsey's real income. 
A)  Yes, Kelsey's real income rose during that 10 year period. 
B)  No, Kelsey's real income fell during that 10 year period. 
C)  No, Kelsey's real income remained constant during that 10 year period. 
D)  It is impossible to determine what happened to Kelsey's real income. A

Question 3

According to the text,the top grossing movie in the US for all time in terms of domestic gross receipts as of June 2012 was ______________________,while the movie with the highest receipts in today's dollars is _______________________.

Accepted Answer

A)  Star Wars; Titanic 
B)  Titanic; Star Wars. 
C)  Star Wars; Gone with the Wind 
D)  Avatar; Gone With the Wind 
E)  Avatar; Snow White and the Seven Dwarfs 
A)  Star Wars; Titanic 
B)  Titanic; Star Wars. 
C)  Star Wars; Gone with the Wind 
D)  Avatar; Gone With the Wind 
E)  Avatar; Snow White and the Seven Dwarfs D

Question 4

The sum of the unemployment rate and the employment rate always equals 100 percent.

Accepted Answer

A) True 
 B)False

Question 5

Exhibit 6-2
  
-Refer to Exhibit 6-2.The unemployment rate in year 4 is

Accepted Answer

A)  12 1/2 percent. 
B)  72 percent. 
C)  87 1/2 percent. 
D)  10 percent. 
E)  90 percent. 
A)  12 1/2 percent. 
B)  72 percent. 
C)  87 1/2 percent. 
D)  10 percent. 
E)  90 percent.

Question 6

Suppose that 1983 is the base year for the Consumer Price Index (CPI)and in 2012 the CPI was 226.What does this "226" mean?

Accepted Answer

A)  What cost $100 in 1983 on average cost 226 times as much in 2012. 
B)  What cost $100 in 1983 on average cost $226 more in 2012. 
C)  What cost $100 in 1983 on average cost 100/226 (or 0.44) times as much in 2012 (that is, it will cost $22 in 2012). 
D)  What cost $100 in 1983 on average cost $126 more in 2012. 
A)  What cost $100 in 1983 on average cost 226 times as much in 2012. 
B)  What cost $100 in 1983 on average cost $226 more in 2012. 
C)  What cost $100 in 1983 on average cost 100/226 (or 0.44) times as much in 2012 (that is, it will cost $22 in 2012). 
D)  What cost $100 in 1983 on average cost $126 more in 2012.

Question 7

Exhibit 6-2
  
-Refer to Exhibit 6-2.The labor force participation rate in year 1 is

Accepted Answer

A)  12 1/2 percent. 
B)  80 percent. 
C)  87 1/2 percent. 
D)  70 percent. 
E)  10 percent. 
A)  12 1/2 percent. 
B)  80 percent. 
C)  87 1/2 percent. 
D)  70 percent. 
E)  10 percent.

Question 8

Look at the following data: Employed persons = 110 million; civilian labor force = 135 million persons; civilian noninstitutional population = 190 million.The unemployment rate is __________ percent and the employment rate is __________ percent.

Accepted Answer

A)  10; 69 
B)  8; 57.9 
C)  18.5; 57.9 
D)  18.5; 81.5 
E)  12; 88 
A)  10; 69 
B)  8; 57.9 
C)  18.5; 57.9 
D)  18.5; 81.5 
E)  12; 88

Question 9

Exhibit 6-2
  
-In an economy with a population of 100 million persons,50 million hold civilian jobs and 20 million are not working but are looking for a job.The unemployment rate is

Accepted Answer

A)  28.6%. 
B)  20% 
C)  25% 
D)  13.33% 
E)  There is not enough information to answer this question. 
A)  28.6%. 
B)  20% 
C)  25% 
D)  13.33% 
E)  There is not enough information to answer this question.

Question 10

Suppose there are 200 million persons in the population,120 million persons in the civilian labor force,and 90 million persons are employed. The number of people unemployed is _______ million and the unemployment rate is ___________ percent.

Accepted Answer

A)  30; 25 
B)  30; 33 
C)  30; 5 
D)  80; 40 
A)  30; 25 
B)  30; 33 
C)  30; 5 
D)  80; 40

Question 11

Is it possible for the economy to be at full employment and still have some people who are unemployed?

Accepted Answer

A)  No, full employment means that no one is unemployed. 
B)  Yes, since full employment exists if the economy is operating at the natural unemployment rate and there is always some natural unemployment. 
C)  Yes, since full employment exists if the economy is operating at the frictional unemployment rate and there is always some frictional unemployment. 
D)  Yes, since full employment equals the sum of the cyclical unemployment rate and the natural unemployment rate, and there is always some cyclical unemployment. 
E)  none of the above 
A)  No, full employment means that no one is unemployed. 
B)  Yes, since full employment exists if the economy is operating at the natural unemployment rate and there is always some natural unemployment. 
C)  Yes, since full employment exists if the economy is operating at the frictional unemployment rate and there is always some frictional unemployment. 
D)  Yes, since full employment equals the sum of the cyclical unemployment rate and the natural unemployment rate, and there is always some cyclical unemployment. 
E)  none of the above

Question 12

Describe the terms frictional unemployment,structural unemployment,and cyclical unemployment. Give a hypothetical example of each to help support your answer.

Accepted Answer

Frictional unemployment is created when

Question 13

The civilian non-institutional population can be broken down into two groups:

Accepted Answer

A)  employed persons and unemployed persons. 
B)  persons working and persons not working. 
C)  persons working in service jobs and persons working in manufacturing jobs. 
D)  persons not in the labor force and persons in the labor force. 
A)  employed persons and unemployed persons. 
B)  persons working and persons not working. 
C)  persons working in service jobs and persons working in manufacturing jobs. 
D)  persons not in the labor force and persons in the labor force.

Question 14

Exhibit 6-2
  
-Refer to Exhibit 6-2.The labor force participation rate in year 3 is

Accepted Answer

A)  12 1/2 percent. 
B)  70 percent. 
C)  80 percent. 
D)  30 percent. 
E)  50 percent. 
A)  12 1/2 percent. 
B)  70 percent. 
C)  80 percent. 
D)  30 percent. 
E)  50 percent.

Question 15

Suppose the market basket consists of 100X,200Y,and 300Z.Current-year prices are $5 for each unit of X,$2 for each unit of Y,and $3 for each unit of Z.Base-year prices are $2 for each unit of X,Y,and Z.What is the approximate CPI in the current year?

Accepted Answer

A)  15 
B)  70.20 
C)  1,200 
D)  150 
A)  15 
B)  70.20 
C)  1,200 
D)  150

Question 16

The labor force participation rate (LFPR)equals the number of

Accepted Answer

A)  employed persons divided by the number of unemployed persons. 
B)  unemployed persons divided by the civilian noninstitutional population. 
C)  employed persons divided by the civilian labor force. 
D)  employed persons divided by the civilian noninstitutional population. 
E)  none of the above 
A)  employed persons divided by the number of unemployed persons. 
B)  unemployed persons divided by the civilian noninstitutional population. 
C)  employed persons divided by the civilian labor force. 
D)  employed persons divided by the civilian noninstitutional population. 
E)  none of the above

Question 17

If we subtract the number of people not in the labor force from the civilian noninstitutional population,we get the number of people in the

Accepted Answer

A)  ranks of the unemployed. 
B)  civilian labor force. 
C)  ranks of the employed. 
D)  ranks of discouraged workers. 
E)  none of the above 
A)  ranks of the unemployed. 
B)  civilian labor force. 
C)  ranks of the employed. 
D)  ranks of discouraged workers. 
E)  none of the above

Question 18

Exhibit 6-2
  
-Refer to Exhibit 6-2.How many unemployed persons are there in year 1?

Accepted Answer

A)  25 million 
B)  50 million 
C)  75 million 
D)  175 million 
E)  200 million 
A)  25 million 
B)  50 million 
C)  75 million 
D)  175 million 
E)  200 million

Question 19

The movie Titanic is the all-time winner in terms of gross receipts in today's dollars.

Accepted Answer

A) True 
 B)False

Question 20

Exhibit 6-2
  
-Refer to Exhibit 6-2.The employment rate in year 4 is

Accepted Answer

A)  12.5 percent. 
B)  7.2 percent. 
C)  72 percent. 
D)  10 percent. 
E)  90 percent. 
A)  12.5 percent. 
B)  7.2 percent. 
C)  72 percent. 
D)  10 percent. 
E)  90 percent.

Exam 6: Macroeconomic Measurements: Prices and Unemployment

If the CPI is 143 in year 1 and 149 in year 2,what is the approximate percentage change in prices between the two years?

According to the text,the top grossing movie in the US for all time in terms of domestic gross receipts as of June 2012 was ______________________,while the movie with the highest receipts in today's dollars is _______________________.

The sum of the unemployment rate and the employment rate always equals 100 percent.

Exhibit 6-2 -Refer to Exhibit 6-2.The unemployment rate in year 4 is

Suppose that 1983 is the base year for the Consumer Price Index (CPI)and in 2012 the CPI was 226.What does this "226" mean?

Exhibit 6-2 -Refer to Exhibit 6-2.The labor force participation rate in year 1 is

Look at the following data: Employed persons = 110 million; civilian labor force = 135 million persons; civilian noninstitutional population = 190 million.The unemployment rate is __________ percent and the employment rate is __________ percent.

Exhibit 6-2 -In an economy with a population of 100 million persons,50 million hold civilian jobs and 20 million are not working but are looking for a job.The unemployment rate is

Suppose there are 200 million persons in the population,120 million persons in the civilian labor force,and 90 million persons are employed. The number of people unemployed is _______ million and the unemployment rate is ___________ percent.

Is it possible for the economy to be at full employment and still have some people who are unemployed?

Describe the terms frictional unemployment,structural unemployment,and cyclical unemployment. Give a hypothetical example of each to help support your answer.

The civilian non-institutional population can be broken down into two groups:

Exhibit 6-2 -Refer to Exhibit 6-2.The labor force participation rate in year 3 is

Suppose the market basket consists of 100X,200Y,and 300Z.Current-year prices are $5 for each unit of X,$2 for each unit of Y,and $3 for each unit of Z.Base-year prices are $2 for each unit of X,Y,and Z.What is the approximate CPI in the current year?

The labor force participation rate (LFPR)equals the number of

If we subtract the number of people not in the labor force from the civilian noninstitutional population,we get the number of people in the

Exhibit 6-2 -Refer to Exhibit 6-2.How many unemployed persons are there in year 1?

The movie Titanic is the all-time winner in terms of gross receipts in today's dollars.

Exhibit 6-2 -Refer to Exhibit 6-2.The employment rate in year 4 is

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According to the text,the top grossing movie in the US for all time in terms of domestic gross receipts as of June 2012 was ,while the movie with the highest receipts in today's dollars is _.

Look at the following data: Employed persons = 110 million; civilian labor force = 135 million persons; civilian noninstitutional population = 190 million.The unemployment rate is percent and the employment rate is percent.

Suppose there are 200 million persons in the population,120 million persons in the civilian labor force,and 90 million persons are employed. The number of people unemployed is _ million and the unemployment rate is _____ percent.